## The assumed discount rate:
r = 0.12

## The inflation rate: if f==0 (no inflation is applied)
##f = 0.04
f = 0.0

old_width = options()$width
options(width=10000)

n_years = 5

for( f in c(0.0, 0.04) ){
    ##
    ## All prices are in NOMINAL dollars(in millions):
    ##
    print(sprintf('NOMINAL dollars with: f= %.3f; r= %.3f', f, r))

    inflation = (1+f)^seq(0, n_years-1)

    unit_price = rep(3.3, n_years) * inflation

    gross_revenue = unit_price * 1

    labor_cost = ( 10000 * 30 * inflation ) / 1.e6
    material_cost = ( 100 * 100 * inflation ) / 1.e6

    net_income = gross_revenue - labor_cost - material_cost

    deprication = rep(2, n_years)

    taxable_income = net_income - deprication

    tax = 0.34 * taxable_income

    after_tax_income = net_income - tax

    R = data.frame(year=seq(1, n_years),
                   labor_cost=labor_cost,
                   material_cost=material_cost,
                   net_income=net_income,
                   deprication=deprication,
                   taxable_income=taxable_income,
                   tax=tax,
                   after_tax_income=after_tax_income)
    print(round(R, 2))

    NPV = -10 + sum( after_tax_income/(1+r)^seq(1, n_years) )
    print(sprintf('NPV (MM)= %f', NPV))
}

options(width=old_width)